Andrew Ross Sorkin on Market Bubbles, Banking Rules, and the Real Lessons of 1929

The podcast explores the parallels between the 1929 stock market crash and more recent financial events, particularly concerning speculation, debt, and regulatory responses. Andrew Ross Sorkin, author of "1929: Inside the Greatest Crash in History and How it Shattered a Nation," discusses whether the pre-crash stock prices were a bubble, weighing the potential for future growth against the risks of excessive leverage. The conversation examines the role of the Federal Reserve, with Sorkin noting the Fed's awareness of speculation in 1929 and its fear of triggering an economic downturn by raising interest rates. The discussion also covers the Glass-Steagall Act and deposit insurance, with both the host and guest questioning their effectiveness and impact on the banking system.